The cash price for a car was $7640. Gurtaj bought the car on the following terms : A deposit of 20% of the cash price and 36 monthly payments of $191.60 . Calculate the total amount Gurtaj paid.
According to actuarial math, where interest is considered, he paid $7640, (you cannot simply add "monies" that are in different time slots on a time graph.
e.g. Making $40,000 in 1985 ≠ $40,000 in 2013
If you ignore interest the total he paid
= .2(7640) + 36(191.60) = $8425.60
A more interesting question would have been to find the interest rate per annum compounded monthly that he was charged.
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$ 8425.60
To calculate the total amount Gurtaj paid, we need to sum up the deposit and the monthly payments he made over the course of 36 months.
First, let's find the amount of the deposit. The deposit is 20% of the cash price of the car, which is $7640. To find this, we can multiply $7640 by 0.20 (which is equivalent to 20%).
Deposit = $7640 * 0.20 = $1528
Next, let's calculate the total amount Gurtaj paid in monthly installments. He made 36 payments of $191.60 each, so we can multiply the monthly payment amount by the number of payments.
Total monthly payments = $191.60 * 36 = $6909.60
Finally, we can calculate the total amount Gurtaj paid by adding the deposit to the total monthly payments:
Total paid = Deposit + Total monthly payments
Total paid = $1528 + $6909.60
Total paid = $8437.60
Therefore, the total amount Gurtaj paid for the car is $8437.60.